Tata Starbucks is evaluating entering the Indian coffee kiosk market. The coffee kiosk market in India is growing rapidly and estimated to reach $185 million by 2015. While India is a tea-drinking nation, the café culture is booming with many brands entering. Competitors like CoffeeDayExpress, Gloria Jean, and Costa Coffee already operate numerous kiosks across airports, malls, and offices. Tata Starbucks' strategy would be to target the working youth commuter segment with a focus on fast coffee service. It would position itself as a premium yet affordable option compared to competitors by operating kiosks in high footfall locations like malls, airports, and corporate parks near existing Starbucks stores.

1. TATA STARBUCKS
- A feasibility
study of Indian
coffee kiosk market
Shivani Sharan
Division B – Roll No
42
SIMS 2013-15
Slide 1 of 6

2. COFFEE KIOSK MARKET
Slide 2 of 6
Estimated Size of organized
coffee retail market in India
Estimated No of
Stores by 2015
No of present stores
Growth rate
Avg Spend per cust
per visit
Avg Contribution of
Food segment to
Overall revenues
US $185 Mn
25 %
30 %
Rs150-200
5000
2400
International
ly
India
• Current World Total Coffee Consumption -
1.3 Kilograms per person per year
(7,358,897 metric tons)
• World coffee exports -9.75 million bags in May 2013
• 20,000 coffee shop businesses in the U.S. with
combined revenues of $10 billion in 2011
• Coffee Kiosks business is present on a large scale in US
It targets the need for -on the go-coffee as well as
presence in crowded areas without incurring cost
of a store
• One of the biggest exporter, one third c
• Booming Café culture, many brands enteri
• Kiosks introduced by Nestle
• Presence of branded as well as local cof
in the kiosk segment

3. COMPETITOR ANALYSIS (Competitor Array)
Slide 3 of 6
FACTORS CoffeeDayExpress Gloria Jean Costa Cofee
Target Segment College going youth Niche market Working consumers
No of Kiosks 900 6 25
Location Malls, college
canteens,hospitals
Airports, hospitals,
corporate parks, malls
Airports, hospitals,
corporate parks
Menu Limited coffee types,
pastries, sandwiches
Variety of coffees, cold
beverages and eateries
Variety of coffees, cold
beverages and eateries
Prices (Avg Cost) Cheap – Rs 20 -100 Costly Rs 100-200 Costly Rs 100-200
Advertising Through its CCD outlets Mostly Brand visibility and
print media
Mostly Brand visibility and
print media, word of mouth
Brand Image Cheap and good option for
coffee, quality and taste less
Quality coffee and high
prices
Quality coffee, variety of
snacks
Target Industry – Coffee Kiosk Segment In Pune, India
Target Customers - The Daily Commuter & The captive consumer
Benefits Expected – Good quality hygienic coffee , quickly available – no hassles
of stores, quick bite
Competitors -

4. Slide 4 of 6
COMPETITOR ANALYSIS (Competitor Array)
Key Industry Success
Factors
CoffeeDayExpress Gloria Jean Costa Cofee
Factors (Wt) Rating Weighted
rating
Rating Weighted
rating
Rating Weighted
rating
Product quality 0.2 4 0.8 8 1.6 7 1.4
Prices 0.2 8 1.6 5 1 6 1.2
Footfall 0.2 8 1.6 6 1.2 7 1.4
Location 0.2 5 1 7 1.4 8 1.6
Brand knowledge 0.2 8 1.6 5 1 6 1.2
Total wt 1 6.6 6.2 6.8
Hence, we can see that Costa Coffee offers more competition.
CDX will also be competition in terms of pulling the youth towards Starbucks
We can target the same segment as Costa Coffee – more in line with Starbucks brand
image

5. BUSINESS OVERVIEW
Slide 5 of 6
Macro Concerns Micro Concerns
TARGET SEGMENT
Product - Most popular items on menu. 2-3 varieties of hot and cold beverages along
with quick snacks
Place – Airports, Corporate offices, Malls, carts for meeting and functions
Price - Lower than store rates, inline with competitors, Avg cost – Rs 100 to 200
Promotion - Word of mouth, print media
Rising prices of Coffee beans
Employable talent pool
Gaining foothold in competitive
market
Positioning of brand
Cost management
Strengths
Starbucks brand image
Quality of Coffee and
Snacks
Venture with TATA
Weaknesses OpportunitiesThreats
New Market
Tea drinking
nation
Late entrant
Local coffee
kiosks – e.g.
Madras coffee
house
New competition
Can target a new
category of
consumers – Fast
Service

6. STRATEGY
Slide 6 of 6
Target Market -Working youth – The daily commuter – Consumer with restricted
spaces
Brand image
Image of Starbucks in India is that of a luxury premium cafe. Works for
stores where cost can be more. Not in line with Kiosk culture.
Brand it as a FAST COFFEE SERVICE provider
Pune – It Hub – Perfect location?
Presence of various IT companies and colleges. Bangalore – a competition,
but prices are very high.
Pune – cheaper, various IT parks and upcoming malls available
Strategy
Place in malls, airports, Corporate parks as well as near Starbucks stores.
Costs
Depending on the size and your menu, average costs are between 5 to 10 Lakhs
Operating Expenses – Rs 8000-Rs10000
Feasibility
If we initially start with a few kiosks with presence in airports, malls and
corporate parks, with few popular menu items, expecting a footfall of around

7. ASSUMPTIONS MADE
BIBLIOGRAPHY
http://knowledge.wharton.upenn.edu
http://www.globalexchange.org
http://www.sbdcnet.org
www.starbucks.in
www.businesstoday.intoday.in
• Tata Starbucks wishes to enter the Kiosk segment, thus changing its target
market and image slightly
• It wishes to compete in the same segment as Costa coffee and Gloria Jean
etc